Student: Chinket Tola ID: UC-60-47-79 Term: VII Major: LAW

Course: Taxation Law Code: LAW312 Lecturer: Than Chanchamnan Shift: Afternoon

Homework
Deadline: October 10, 2013

I. Fiscal Year
1. What is a Fiscal Year? Fiscal year is very important to all countries in over the world. Fiscal year is a crucial period that the state can collect and set taxes, and also it is a period that the government manages its financial system. In other words, according to Oxford Advanced Learner’s Dictionary, fiscal year or financial year refers to “a period of twelve months over which the accounts and taxes of companies or persons are calculated”. It also identifies the starting and ending months for a state’s accounting and taxing period of twelve months.1 2. When does Cambodian Fiscal Year start and end? As mentioned above, the fiscal year is differently determined the beginning and the ending months from one country to another country. In general, the fiscal year is often based on the calendar year for many countries2, but some countries indicate their fiscal year different from the calendar year. To respond, Cambodian fiscal year is a twelve-month period which begins on January 01 and ends on December 31 every year3. More specifically, the taxable year determined by the Ministry of Economy and Finance is more focused on the tax on profit of real-regime-tax-bound company or enterprise, which is counted based on the calendar year (starting on January 01 and ending on December 31)4. Moreover, there are some exceptional cases for those companies and enterprises that are newly created. For a newly-created company or enterprise, the taxable year is calculated for the first year of creation from the date that the company or enterprise is formed to the calendar-ending month

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Central Intelligence Agency, CIA. Field listing: Fiscal year. The Work of a Nation. The Center of Intelligence. Retrieved on September 15, 2013 from https://www.cia.gov/library/publications/the-worldfactbook/fields/2080.html 2 Ibid., 3 Law on Financial System for Public. No.NS/RKM/0508/016. May 13, 2008. Article 11. 4 Prakas of Ministry of Economy and Finance on Taxable Year. No.1481SHV.PRKPD. December 31, 2007. Exercise 1.1.

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More interestingly. which means that the financial year of France begins on January 01 and ends on December 31 every year7. 9 Ibid.cia. The Center of Intelligence.. How is about Fiscal Year in Thailand. 5 6 Prakas of Ministry of Economy and Finance on Taxable Year.2 and Exercise 2. The fiscal year in France is counted based on calendar year the same as Cambodia.html 8 Ibid. any company or enterprise created in territory of the Kingdom of Cambodia and having ownership more than 51% of equity interest (តម្លលភាគកលម) in the overseas-based company can request for new fiscal year (i. However. As for Thailand and the United States of America. we can assume that the financial year or fiscal year or taxable year is not the same by the country. which can identify their unique system of financial year counting. 3. France. -2- .. After a few mentioned examples of fiscal year in some countries. the financial year is deliberated for the starting month of April 06 and the ending month of April 05 of each year10. the taxable year is bound to the normal taxable year (calendar year. 10 Ibid. thus. It is designed for facilitating the administrative work of those own countries. Exercise 1. and the United States of America? As the previous mentioned.. (2007). Japanese financial year is designed for the beginning month of April 01 and the ending month of March 319. the financial year or fiscal year identifies the beginning month counting on October 01 and the ending month counting on September 30 of every year8. The Work of a Nation.e. Personally. 2013 from https://www. Field listing: Fiscal year. It is shown that Thailand and USA differently determine the fiscal year from other. Ibid.gov/library/publications/the-worldfactbook/fields/2080. Japan. Retrieved on September 15. the United Kingdom. it is different from the normal fiscal year) by submitting the request to the General Department of Taxation6. Japan and the United Kingdom determine the fiscal year similarly—the same month of beginning but different month of ending and different in the day of both beginning and ending. and for the following years. Exercise 1. it is not said about local companies or enterprises for requesting the new taxable year differed from the provided one. it seems to be unclear whether the local companies or enterprises can have the right to do so or not.as normal taxable year (December 31)5. January 01 to December 31). the fiscal year is various in any country. Focusing on UK.1.. 7 Central Intelligence Agency. CIA.

the government projects the tax revenue for 2013 in amount of 7. 16 Law on Finance for Administration 2013. category A. the National Assembly always adopts the Law on Finance for Administration (LFA) to determine all state revenue and expenditure. group I. More considerably.321. type I. group I.784.1 million riels which is 1. 11 12 Law on Finance for Administration 2013.073.NS/RKM/1212/010.321 million riels for districts (Srok/Khan)14. it is predictably 865.382. how much does tax revenue account? Main source of national revenue is taxes. Moreover.e. Remarkably. Article 16-a. LFA 2013 projects for revenue and expenditure in amount of 80.095. The sums of 5. p-1. it is about 16. 14 Law on Finance for Administration 2013. the same as the revenue12.e.3 million riels (i.990 million riels of tax on profits of rental lands and buildings. the national revenue and expenditure are projected.400.431. -3- .683. type I.770 million riels: 281. 15 Law on Finance for Administration 2013.II.221 million riels13. As for provincial and municipal revenue and expenditure. Chapter 70. Law on Finance for Administration 2013 plans the national revenue in amount of 12.8)15. p-1.3 million riels. 13 Law on Finance for Administration 2013. What is the amount of projected tax revenue for 2013? Every year. The projected tax revenue 2013 is planned to collect from all kinds of taxes imposed by the Government of the Kingdom of Cambodia.0 million riels. 2012. Thus.3 million riels11. Cambodian Tax and Non-Tax Revenues Based on Law on Finance for Administration 2013 1.280.095.114. category A. the projected tax revenue in 2012 was 6.6%) greater than tax revenue in 2012 (i.1 million riels and abroad-based taxes in amount of 1. therefore. For instance. Law on Finance for Administration 2013.3 million riels—about 17. December 26. and the national expenditure is planned in amount of 12.780 million riels of tax on salary and 76.784. including domestic-based taxes totalized 5.6%—greater than 2012 was) include with seven main tax revenues16: a) individual profit/income taxes quantifying 358.073. Article 16-b.1 million riels of domestic-based taxes (i.731. a part of all the revenue mentioned above is taken from tax revenue. In each Law on Finance for Administration. No.536. LFA 2013 plans 520. Article 2.683.040. Article 1. Table A: National Revenue 2013. Table A: National Revenue 2013.e. Law on Finance for Administration 2013 also determines the projected revenue for sub-national administrations—mostly focusing on provincial and municipal administration and district administration.

9%.130 million riels of customs on imported goods and services.1 million riels collecting income from domestic licensing.b) entity income (profit) taxes in sum of 1. pp-1-2.431 million riels of abroad-based taxes (i.500 million riels on fines from violating tax provisions.140 million riels of customs on crude petroleum products. and 737.399 million riels of imported-value-added tax on agricultural goods and services.450 million riels of added excise on crude oil for repairing roads.520 million riels of imported-value-added tax of petroleum.570 million riels of other imported value-added taxes. 26.048 million riles of tax on casinos and 68. it is projected to be 175. Table A: National Revenue 2013. 19.353.430 million riels of public-enterprise value-added tax. e) taxes on fixed services amounting 151. 112. about 12.840 million riels of privateenterprise value-added tax.880 million riels. 326.485.121. d) taxes on targeted property in sums of 1. c) general taxes on property and services totalizing 2.400 million riels.798 million riles such as 83. and tax on rental lands and buildings of private entities quantifying 10.450 million riels.750 million riles of special tax on other certain services.791 million riels such as 4. The amounts of 1. and g) other tax revenue amounting 18. category A. greater than 2012 was) include the two main tax revenues17: a) tax and excise on imports in amount of 1.510 million riels of special tax on certain imported goods and services of petroleum.418. 230.e. f) taxes on the use of property or implementing actions in amount of 10.000 million riels of ahead-of-taken profits of customs work in importing (កម្រលយកលុនពកា ី រងារគយកនុងការ នាំចូល).550 million riels: tax on profits of public enterprises amounting 71.335 million riels such as 758. 991.536. 562. Chapter 71. and 897.331 million riels. type I.000 million riels of private-enterprise turnover tax. -4- .530 million riels such as special tax on certain domestic goods and services amounting 352.203.759 million riels: 32. 328.622. group I. 670 million riels of 17 Law on Finance for Administration 2013.291 million riels on stamp tax and 14.570 million riels of special tax on other certain imported goods and services. tax on profits of private enterprises totalizing 1.270 million riels.

and 406 million riels of fines of exporting offenses. or “Aerial Navigation”. and public enterprise income amounting 44. This term seems to be more appropriate translations.195 million riels of fines of importing offenses.220 million riels of excise on exported agricultural products and other products. Non-tax revenue is projected in amount of 1.542. and 12.340.7 million riels which includes two main sources: income from concession and rental of lands amounting 64. 662. I am still confused with translating this term. income from sale or lease of public property and services (b). and b) tax and excise on exports in amount of 183. “Aeronautics”.3 million riels of mining concession.000 million riels of profits on administration and visa of exports.3 million riels from income of radios and televisions. 18. group I. income from fining and punishment (c).profits from sale of customs.. “Civil Aeronautics”. b) Income of sale or lease of public property and services is planned to receive in amount of 698.664.152.895 million riels of profits of public enterprises and 53. and other income and special income (e).959.020. and 750 million riels of customs on raw material for production of medicine . p-2.5 million riels counting 60. category A. 202. 4. 28.535.800 million riels from civil airline20 (អាកាសចរណ ៍ សុីវ ិល) income. income from finance (d).710 million riels of excise on exported rubber. Table A: National Revenue 2013. 20 It is seems to be unclear whether this translation is correct or not.1 million riels from tourism activity income. Ibid.5 million riels which takes in four important sources: income from profits of public enterprises. 2. 20.19 a) Public property income is projected in amount of 109.2 million riels of lease of unused lands.400 million riels of forestry concession. but also sourced from non-tax revenue. 59. 24 18 19 Law on Finance for Administration 2013.390 million riels (about 13%) greater than 2012 was18. 110.2 million riels of payment for reduction (ការបង់រ ាំលស់).2 million riels consisting of 44.760 million riels of excise on exported woods.2 million riels from cultural activity income.979 million riels from income of posts and telecommunications.5 million riels comprising 2. What contributes non-tax revenue? The Cambodian national revenue is not only gained from taxes. -5- . type II. processing administrations and services (ផលទុន ពីសហរាសសាធារណៈ រដ្ឋបាលនិងសសវាដ្ាំសណ ី រការ) amounting 332.700 million riels of fishery concession.2 million riels which is 132. 1. 54.594.948.619. This non-tax revenue is collected from five main sources: income from public property (a).452.096 million riels such as 16.

262. specialized departments in each province and municipal).000 million riels which include 261.1 million riels from verifying production quality and standard (ផលពីការរតួតពិនិតយគុណភាពផលិតផល និងការសារពបទដ្ឋ ឋ ន).502 million riels. and 38. income from administrative management amounting 305. The offenses are imposed on both tax officials and taxpayers who violate the provisions in this law. 4.979. 1.000 million riels.5 million riels from payment of examination permission. Tax Offenses 1. 1.762.466 million riels from land registration and construction services.3 million riels of income from caring services. Indicating five tax offenses defined by Law on Taxation (LoT) 1997 According to Law on Taxation 1997. e) Special income and other income are projected to get in amount of 270. and 3.271.977.618. 2. The five main offenses are going to be explained as following: -6- .085.991. 8. 12.717. income from non-profit administrative and service supply in amount of 43.323 million riels from selling immoveable property.003 million riels from selling plagues. c) Income from fining and punishment is expected to receive in amount of 2.5 million riels from leasing public buildings in central administrations. patents and any publishing. 150 million riels of income from selling pieces of property and animals. there are many kinds of tax offenses stipulated from articles 125 to 139.4 million riels from leasing equipment and transportations.9 million riels comprising 7. 9.8 million riels of income from goods transporting. income from official documents. III.728 million riels of income from other administrations and services.8 million riels from court fee.million riels from water supply income. 12. d) Income from financial management—interest of lending money—is proposed to get around 72.4 million riels from leasing immoveable property (non-furniture). and 9.865 million riels from income of embassy administrative work (income from passports and visas).9 million riels from other income.1 million riels from income of establishment of enterprises. and income from leasing immoveable property in amount of 17.677 million riels from income of privatization on public enterprises and 8. 2. and 16.230.e.452.5 million riels consisting of 148.6 million riels from leasing provincial and municipal public buildings (i.6 million riels containing 126 million riels of income from selling damaged equipment and study materials.

knowingly.e. This offense is mostly imposed on tax administration and every person who is or has been an official and agent of the tax administration. Law on Taxation. Rights and Obligations of Taxpayers. provided by Law on Taxation 1997) for not more than 10 percent of the latter26. calendar years). Article 127. 23 Law on Taxation. 1997. Article 94. February 24. They are also considered as tax evaders where they committed the serious tax negligence within two main commissions: 1) committing two times separately within period of three calendar years and 2) committing three or more times within any period of time (i. In liability. (1997). However. General Department of Tax of Ministry of Economy and Finance. Articles 125 -126. c) Offense of Negligence and Serious Negligence25: A taxpayer or a withholding agent shall be considered as committing an offense of negligence when they fail to file the tax return or to pay tax due to the date required by law or/and the amount of tax they paid is less than the amount of tax determined by tax provisions (i. (1997). Article 125. 27 Law on Taxation. (1997). 24 Law on Taxation. p-13. and repeatedly violated tax provisions. (2010). 26 Law on Taxation. They are allowed to provide information related to taxpayers only permitted by law. Article 138. No. (1997). These persons need to keep confidential information that they have received from taxpayers during their official duty and performance22. Also. systematically. they are accountable to pay additional tax within 10 percent of underpaid tax plus 2 percent of interest of the amount of underpaid tax for each late payment month or part of a month that the amount of underpaid tax is not paid27. 25 Law on Taxation. The offenders shall be liable to a fine from ten million riels to twenty million riels or to imprisonment from one year to five years or both committed penalties. paragraph 1. Considerably. someone who intentionally reduces or eliminates the tax amount required by tax provisions to be paid is considered to commit offense of tax evasion.a) Offense of Revealing Confidentiality of Taxpayers21: Every person who reveals the confidentiality of taxpayers shall be considered as committing an offense of revealing confidentiality.e.NS/RKM/0297/03. when they committed this offense. -7- . the taxpayer or withholding agent shall be considered as 21 22 Law on Taxation. Articles 94 and 138. Article 131. (1997). (1997). they are subjected to be fined from five million riels to ten million riels or to be punished imprisonment from one month to one year or both penalties are imposed23. b) Offense of Tax Evasion24: Being willfully.

of attempting to obstruct the assessments or collections of taxes. and of willfully supporting all two mentioned acts shall be considered as committing an offense of obstruction of implementation of tax. to properly keep accounting records or financial records. the tax is unilaterally determined by tax administration and delivered to them (i.e. Also. Responding to serious negligence. to maintain proper documents. he/she shall be liable for a fine of additional tax payment of 28 Law on Taxation. paragraph 2. or other information. Article 131. miscarries to inform the tax administration about changing of registration. the additional tax for the late payment of tax on means of transportations shall be 100 percent of the must-paid tax31. 29 It is referred to “Unilateral Tax Determination” meaning to the tax where the taxpayer or withholding agent fails to file tax declaration. Being found guilty. (1997).committing an offense of serious negligence where the amount of tax paid is less than the amount of tax that defined by tax provisions for more than 10 percent of the latter. 31 Law on Taxation. (1997). paragraph 3. (1997). reports. However. taxpayer and withholding agent) (Paragraph 3 of Article 116 of Law on Taxation 1997 and page 12 of Rights and Obligations of Taxpayers published by General Department of Tax of Ministry of Economy and Finance). p-13. Article 131. the additional tax shall be 40 percent of the amount of underpaid tax plus 2 percent of interest of the amount of underpaid tax for each late payment month or part of a month that the amount of underpaid tax is not paid where the tax29 is unilaterally determined by the tax administration. 32 Law on Taxation. or other information. they are bound to pay additional tax in amount of 25 percent of the amount of underpaid tax plus 2 percent of interest of the amount of underpaid tax for each late payment month or part of a month that the underpaid tax is not paid28. p-13. (2010). deliberately hides or destroys accounting records. Also. documental records. conducts or provides deceitful records. -8- . Article 132. (2010). 30 Law on Taxation. but also government officials who has committed acts of revealing disallowed confidentiality. does not allow tax administration to assess accounting records or other documents. Not only taxpayer or withholding agent. Rights and Obligations of Taxpayers. reports. flops to register at tax administration. Rights and Obligations of Taxpayers.30 More remarkably. d) Offense of Obstruction of Implementation of Tax32: Any person shall be considered as being guilty where he/she fails to keep accounting records and other documents or fails to issue invoices of business transactions. fails to submit a nil tax declaration within 30 days of the date required by law. attempts to obstruct the assessments or collections of taxes. or to provide necessary information to tax administration to properly determine tax. and on purpose supports all mentioned acts. documents. (1997). General Department of Tax of Ministry of Economy and Finance. Article 128. General Department of Tax of Ministry of Economy and Finance. therefore.

e) Offense Committed by Tax Officials33: Any person who is the tax officials (i. (1997). and of collecting or making an effort to collect tax without authorization. Article 139. 35 Law on Taxation. More seriously. or government officials of real regime system of taxation. To be more specific and detailed. of exercising his/her position as tax officials to obtain money or other benefits from any taxpayer or other persons. Article 137. of submitting incorrect reports about the amount of tax he/she has received.e. and of five hundred thousand riels in case that he/she is the taxpayer. paragraph 2. which prescribes more about aiding and abetting offense: f) Offense of Aiding or Abetting35: Anyone who on purpose aids or abets another person to commit criminal violations to the provisions of Law on Taxation 1997. or withholding agent. (1997). which he/she shall be liable imprisonment from five years to ten years. (1997). -9- . Law on Taxation.two million riels in case that he/she is the taxpayer. or deliberately advises or induces another person to commit such violation. this question will be added one more tax offense mentioned in Law on Taxation 1997. he/she shall be liable for a fine from five million riels to ten million riels or for imprisonment from one month to one year or both penalties. shall be considered as being guilty for aiding or abetting and be liable for the same penalty as if he/she has committed criminal violations himself/herself. he/she has been assigned to implement tax provisions) shall be considered to be guilty of violations of the law where he/she intentionally committed act of withholding an amount of tax for his/her own use or for other uses not mentioned in the tax provisions. 33 34 Law on Taxation. Lawfully. or withholding agent. or government officials under the simplified or estimated regime system of taxation. any tax official who has deliberately requested or accepted bribes shall be punished for a crime of bribery34 stipulated in Article 280 of Criminal Code 2009 of the Kingdom of Cambodia. Article 139.

NS/RKM/1109/022. December 26. 2010. -10- . 6. 2008. Retrieved on September 15. 2. 2003. No. Law on Public Finance. November 30.PD. Central Intelligence Agency. February 24. 2012. Ministry of Economy and Finance. General Department of Tax. December 31.NS/RKM/0297/03. 2010. No. 4. Obligations and Rights of Taxpayers.NS/RKM/0508/016.gov/ library/publications/the-world-factbook/fields/2080. 1997. 5.0303/010. The Center of Intelligence. May 13. University of Oxford: Oxford University Press. 9. 3. 7. 2009. No. 8th Ed. Prakas of Ministry of Economy and Finance on Taxable Year. CIA. Law on Finance for Administration 2013.PRK. No. March 31.NS/RKM. The Work of a Nation.cia.NS/RKM/1212/010.html. Criminal Code of the Kingdom of Cambodia. 2007. Field listing: Fiscal year. Law on Amendment of Law on Taxation. 8. Oxford Advanced Learner’s Dictionary. 2013 from https://www. No. No. Law on Taxation.References: 1.1481SHV.

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